After the devastating earthquake in Türkiye, measures were introduced to support tradespeople and small businesses affected by the disaster. A regulation was enacted to defer repayment of low-interest loans obtained either through guarantees from Tradesmen Credit and Guarantee Cooperatives or directly from Halkbank.
Following the Presidential Decision published in the Official Gazette, procedures and principles were defined for deferring loan repayments for tradespeople and artisans operating in the 10 affected provinces whose businesses suffered losses or were unable to continue operating normally. The deferral applies to loans provided through Halkbank with guarantees from ESKKK—which is affiliated with TESKOMB regional unions—or to low-interest loans granted directly by Halkbank.
LOAN RELIEF FOR EARTHQUAKE-AFFECTED TRADESPEOPLE
Under the Presidential Decision published in the Official Gazette, relief measures were introduced to ease loan repayments for those covered by the decision. Loans whose due date or installment date had not yet arrived but which fall due within six months from February 6, and loans that were within a 90-day grace period as of February 6, will be deferred for six months from their original due date. This deferral will be applied without requiring any application from the borrower.
Accrued interest during the deferral period will be covered by the Ministry of Treasury and Finance. Accordingly, and in line with the loan amortization schedule, all remaining installments will be postponed for six months. No enforcement or collection actions will be initiated for the deferred loans until the end of the deferral period.
DECISION NOW IN FORCE
Effective from February 6, the decision stipulates that banks’ income losses resulting from deferred loans will be calculated based on the prevailing commercial loan interest rate applied to tradesmen and artisans’ loans. These calculations will determine the compensation due to banks for the income shortfall caused by the deferrals.
Information about the deferred loans and the estimated income loss amounts through the end of the deferral period will be reported monthly to the ministry to enable proper projection and compensation planning.
LOW-INTEREST LOANS AVAILABLE
Tradespeople and artisans whose debts are deferred may, upon request, be provided low-interest loans under the terms of the decision. During the deferral period, banks can also open low-interest loan facilities for these borrowers. Provisions that would otherwise prevent granting credit to those with deferred debts will not apply in this context.